Illustrative image (Source: VNA) Jakarta (VNA) – The central bank of Indonesia (BI) has announced an interest rate cut of 0.25 percent to 6 percent, the fourth reduction since early this year.
According to BI spokesperson Tirta, the cut aims to support the Indonesian Government in boosting sustainable growth and speeding up the country’s renovation of its economic structure.
The June 16 announcement of the BI was given after the US Federal Reserve’s decision to hold its interest rate and maintain the current low rate.
According to the Indonesian statistics office, the country’s inflation in May this year was 3.3 percent, while the country’s current account deficit stayed at a safe level thanks to a continuous trade surplus in the first five months of the year.
Meanwhile, foreign direct investment to Indonesia reached about 4.5 billion USD.-VNA
